June 26, 2018 at 07:20 pm
Jenniffer B. Austria
Global Ferronickel Holdings Inc. pegged the final offering price for its planned share sale at P2.07 apiece.
Global Ferronickel is expected to raise P517.5 million from the sale of up to 250 million primary common shares, comprising of up to 4.44 percent of the company’s outstanding shares after the offering.
The company said the final offering price represented an 8.48-percent discount to the 10-day volume weighted average price of the stock from June 8 to June 25.
The mining firm earlier set the offering period from July 9 to 13. The shares will be listed with the Philippine Stock Exchange on July 20.
Global Ferronickel plans to use the net proceeds from the offering to partially pay the outstanding loan of unit Platinum Group Metals Corp. from Taiwan Cooperative Bank and fund working capital for its operations in the Cagdianao Mine in Surigao del Norte.
Abacus Capital and Investments Corp. will act as the underwriter for the fundraising activity.
Global Ferronickel, through PGMC, is the third-largest nickel ore producer in the Philippines by volume of nickel shipped and the biggest in terms of the value of the shipment.
It is also one of the largest single-mine lateritic exporters in the world and one of the biggest global suppliers of nickel ore, accounting for 12.6 percent of the country’s production.
The company is currently exploring opportunities in mineral processing.
Global Ferronickel in November signed an agreement with Vi Holding LLC, a member of an international investment and industrial group of companies from Russia with interests in mineral exploration and processing, real estate, energy and in innovative solutions, to implement joint business projects in the processing of lateritic ores.
Both parties are set to conduct initial testing of ore samples and feasibility studies for the proposed processing plant.